Maybe you are a born citizen in the Philippines, and you went to the US or UK for business purposes, or a lady in the Philippines caught your attention, and you want to send some funds to your family or girlfriend, respectively. It is always a good gesture to support your people back at home or support someone you love. However, international money transfers, especially for large amounts of money, are something that you should significantly consider before making a move.
Before we can head any further, let's consider the different ways that you can send money to the Philippines. There are three ways to transfer money to the Philippines
Bank Transfer – although this is a secure way of sending money to the Philippines, there are two significant obstacles. Most banks charge an average of 10.99%to transfer money to the Philippines (World Bank states that it is the most expensive approach in transferring money to the Philippines). Another issue is that only 31% of citizens 15 years plus have a bank account, so it is challenging to use this method.
Money Agent – this is a more straightforward method of money transfer to the Philippines. All you have to do is give the agent the cash, and the receiver collects money from an agent of a similar company on the other end. Please consider the distance between your receiver's location and the location of the nearest agent.
Mobile Wallet – the approach is growing in popularity. It works by storing money into your wallet in an app to send money directly, make payments, or hold the money.
Things to be considered while Sending over Money to the Philippines
It's now clear that there are alternatives to send money to the Philippines, although there are several things that you should consider before making a transaction. These factors are about sending money through a money agent.
1. Select an effective money transfer operator
2. Look for favorable rates and fees
3. Research if your remittance channel is secure
What is the International money transfer policy of the Philippines?
Overseas remittance is significant to the Philippines' economy. Thus, the money is not taxed even though all remittances recipients must file the details with the government to verify that they indeed got funds from Filipinos living abroad (this is only applicable for Filipinos living abroad). You should not at any cost transfer money to the Philippines anonymously for the government issues harsh penalties for doing so. It is essential to consult a financial advisor before making a move.
You should beware of any possible hidden charges or fees posed on overseas money transfers to the Philippines. Some of the government regulations through The Bangko Sentral ng Pilipinas (BSP) the Central Bank of the Republic of Philippines include.
a) Any cross-border money transfers involving Philippine pesos through electronic transfer, other monetary instruments, or legal tender Philippine currency are free for amounts up to PHP 50 000 ($956). BSP should authorize any transfer beyond that limit. This authorization is excepted for transactions involving the test of the money counting machines, collectors of currency, and educational purposes.
b) Any cross-border money transfers involving foreign currencies in and out of the foreign currency and other bearer monetary instruments are free to a limit of $10 000. Any amount past the limit should involve a written declaration using the same foreign currency declaration form obtained from the Bureau of Customs Desk.
Additional Regulations
Other regulations by the government of the Philippines include1. Documents – any money transfers above $10 000 should be accompanied by a written declaration that comes as BSP's "Foreign Currency and Other FX-Denominated Bearer Monetary Instruments Declaration Form" accessible from their website. Any transfer above $7 600 ought to be reported to the Anti-Money Laundering Council.
2. Bank wire fees - these transfers are also subject to a commission of up to $10, and also the banks from the Republic of Philippines charge an additional $25 for wire transfer services.
3. Prepaid and credit cards – MasterCard and Visa are applicable in the Philippines, and the transfers using these cards are subject to a 3% fee for every transaction.
3. Atms limits and fees – there are different international banks in the Philippines, and they do have additional terms of working. That includes the manner and limitations, although there are steady 5% fees for the transactions.